58-817. Sale of stored property; procedure; redemption; notices.
58-817
58-817. Sale of stored property; procedure; redemption; notices.(a) (1) If the occupant is in default for a period of morethan 45 days, the operator may enforce the lien by selling the propertystored in the leased space for cash. Sale of the property stored on thepremises may be by public or private proceedings and may also be as a unitor in parcels, or by way of one or more contracts and at any time or place,and on any terms as long as the sale is commercially reasonable. The operatormay otherwise dispose of any property which has no commercial value.
(2) The proceeds of such sale shall then be applied to satisfy the lien,with any surplus disbursed as provided in subsection (d).
(b) Before conducting a sale under subsection (a), the operator shall:
(1) Notify the occupant of the default by first-class mail at the occupant'slast-known address;
(2) send a second notice of default, not less than seven days afterthe notice required by subsection (b)(1), by restricted mail to the occupantat the occupant's last-known address which includes:
(A) A statement that the contents of the occupant's leased space are subjectto the operator's lien;
(B) a statement of the operator's claim, indicating the charges due onthe date of the notice, the amount of any additional charges which shallbecome due before the date of release for sale and the date those additionalcharges shall become due;
(C) a demand for payment of the charges due within a specified time, notless than 10 days after the date of the notice;
(D) a statement that unless the claim is paid within the time stated,the contents of the occupant's space will be sold after a specified time; and
(E) the name, street address and telephone number of the operator, ora designated agent whom the occupant may contact to respond to the notice.
(3) At least seven days before the sale, advertise the time, place andterms of the sale in a newspaper of general circulation in the jurisdictionwhere the sale is to be held. Such advertisement shall be in the classifiedsection of the newspaper. The ad shall state the items thatwill be released for sale.
(c) At any time before a sale under this section, the occupant may paythe amount necessary to satisfy the lien and redeem the occupant's personal property.
(d) If a sale is held under this section, the operator shall:
(1) Satisfy the lien from the proceeds of the sale; and
(2) hold the balance, if any, for delivery on demand to the occupant orany other recorded lienholders for a period of one year after receipt ofproceeds of the sale and satisfaction of the lien. Thereafter, the proceedsremaining after satisfaction of the lien shall be considered abandoned propertyto be reported and paid to the state treasurer in accordance with the dispositionof unclaimed property act.
(e) A purchaser in good faith of any personal property sold under theself-service storage act takes the property free and clear of any rights of:
(1) Persons against whom the lien was valid; and
(2) other lienholders.
(f) If the operator complies with the provisions of the self-service storageact, the operator's liability:
(1) To the occupant shall be limited to the net proceeds received fromthe sale of the personal property, and
(2) to other lienholders shall be limited to the net proceeds receivedfrom the sale of any personal property covered by the other lien.
(g) If an occupant is in default, the operator may deny the occupant accessto the leased space.
(h) Unless otherwise specifically provided, all notices required by theself-service storage act shall be sent by restricted mail. Notices sentto the operator shall be sent to the self-service storage facility wherethe occupant's property is stored. Notices to the occupant shall be sentto the occupant at the occupant's last-known address. Notices shall bedeemed delivered when deposited with the United States postal service, properlyaddressed as provided in subsection (b), with postage prepaid.
History: L. 1983, ch. 187, § 6; L. 1984, ch. 204, § 1; April 26.